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Obama says Senate plan ‘only viable way’ to prevent tax hike

danarhea

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WASHINGTON — President Barack Obama says a bipartisan compromise reached by the Senate is the “only viable way” to prevent a tax increase on Jan. 1.

In a surprise appearance in the White House briefing room on Tuesday, the president said a “faction” of Republicans in the House is refusing to vote on a Senate bill that would extend a payroll tax cut for two months.

And of course, although I disagree with Obama on a lot of things, sometimes strongly, I have to say that he is right on this one. After all, Speaker Boehner originally kicked this over to the Senate, demanding that Democrats compromise. Democrats in the Senate DID compromise to the extent that the unemployment tax bill passed the Senate with a LOT of Republican support. When it came back to the House, Boehner could not keep the extremists in his party in line, and the compromise failed. I can't fault Boehner for attempting to kick this back to the Senate, and demand more compromises again, even though GOP Senators managed to already extract compromises. Boehner is over a barrel, and his leadership is weak. In the end, almost all of the House Republicans revolted against the bipartisan Senate plan, which was endorsed by no less than Mitch McConnell himself.

Now, instead of forcing Obama's hand, as they hoped to do, House Republicans have put themselves in the hot seat, because the failure here is certainly going to be a red meat issue for Obama and the Democratic party in 2012. When you only hold one House and not the Presidency, "my way or the highway" is not going to work. This was a serious miscalculation on the part of House Republicans, who will suffer consequences for their actions next year. This can still be avoided. Don't attempt to call Obama's bluff. Just go back into session and pass the damn thing. You will look like heroes if you do, and goats if you don't.

Article is here.
 
The jaded side of me says that they made a really grim calculation. Allowing the payroll tax break to expire means $120 billion less in consumer spending (mostly) this coming year. That means something like 1 million jobs evaporate. It seems to me that they might be thinking "sure, people will be mad at us about this for a few weeks, but they'll forget all about it way before the election, but they won't forget about the unemployment rate and they'll blame Obama for that". I hope they aren't really that cynical about people's lives, but I gotta say, that's how it looks to me at the moment.
 
I'm sure they will try to blame Democrats, just like Democrats will blame Republicans. I am in agreement that the Democrats are going to be more successful in that argument given the way the vote went in the Senate. I think the problem is the more extreme conservatives really don't have political experience. They don't realize what they are doing. There's being tough and uncompromising, and then there's being suicidal (to your political career). You can only take things so far before you lose too many voters. A decrease in take-home pay for most Americans is going to be something they notice, they're going to notice it right away.
 
Is this the one he promised to veto? Who the hell really knows what position he holds?
 
The jaded side of me says that they made a really grim calculation. Allowing the payroll tax break to expire means $120 billion less in consumer spending (mostly) this coming year. That means something like 1 million jobs evaporate. It seems to me that they might be thinking "sure, people will be mad at us about this for a few weeks, but they'll forget all about it way before the election, but they won't forget about the unemployment rate and they'll blame Obama for that". I hope they aren't really that cynical about people's lives, but I gotta say, that's how it looks to me at the moment.

120 billion less this year? Does that mean it's important for the economy to continue this for the year? 2 months wouldn't do it?
 
Is this the one he promised to veto? Who the hell really knows what position he holds?

Sort of. He promised to veto a bill that REQUIRED him to approve the XL pipeline, but the actual bill just requires him to issue his decision within 60 days, not which way he has to decide it. But, yeah, I think that is part of what happened here. The house Republicans thought they could safely agree to the tax break for the middle class as long as it had something on there about the pipeline because Obama would veto it and they wouldn't have to actually give the middle class a tax break. When it turned out that it would actually go into effect they had to backpedal or else it would actually happen.
 
120 billion less this year? Does that mean it's important for the economy to continue this for the year? 2 months wouldn't do it?

Right. 2 months is the compromise to give them more time to work out a deal for the full year. The Democrats have been pushing for the full year from the start, but they couldn't get Republicans in the senate to agree to it in time to avoid the hike going into effect january 1st, so they bought more time to keep trying to find an agreement. The plan is to do it for the whole year, they just need to get enough Republicans on board. This gives them two months to do that.
 
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Right. 2 months is the compromise to give them more time to work out a deal for the full year. The Democrats have been pushing for the full year from the start, but they couldn't get Republicans in the senate to agree to it in time to avoid the hike going into effect january 1st, so they bought more time to keep trying to find an agreement. The plan is to do it for the whole year, they just need to get enough Republicans on board. This gives them two months to do that.

You work it out by putting a 1 in front of the 2.
 
Right, that's what the Democrats have proposed over and over. The Republicans won't agree to it.

Boehner isn't a Republican? What a coup for the Dems eh? Agree with Boehner and tell him to send them the 12 months and see if the Senate Republicans will vote against it if that's the case.
 
Boehner isn't a Republican? What a coup for the Dems eh? Agree with Boehner and tell him to send them the 12 months and see if the Senate Republicans will vote against it if that's the case.

The house already voted down the 12 month version once... What they're doing now is trying to figure out ways that they can obscure the fact that they don't support it with tricks. Now they're pretending that they support it because the senate is gone so they know it can't be passed. Before they claimed to support it with the pipeline, but when they actually got that, they had to change their story. Next they'll propose a 12 month version that is so loaded with ridiculous ultra right wing unrelated nonsense that no Democrat could possibly vote for it... You may be falling for that, but if you are, you're pretty much the only one in the country who is...
 
The house already voted down the 12 month version once... What they're doing now is trying to figure out ways that they can obscure the fact that they don't support it with tricks. Now they're pretending that they support it because the senate is gone so they know it can't be passed. Before they claimed to support it with the pipeline, but when they actually got that, they had to change their story. Next they'll propose a 12 month version that is so loaded with ridiculous ultra right wing unrelated nonsense that no Democrat could possibly vote for it... You may be falling for that, but if you are, you're pretty much the only one in the country who is...

Thank you. Someone actually gets this. This is nothing but political grandstanding. If House Regressives were actually concerned by the tax increase, they would take the two month deal with the pledge to have a deal though the end of the year worked out in 60 days. The idea of calling the Senate back to work in a panic to work on something that already has a valid extension on it is done only to try to shift the blame to the Dems.
 
This is all so unbelievably absurd...BALANCE THE BOOKS PERIOD!!!!!!!!!!!!!!!!!!!!

If you don't have it, don't spend it, don't borrow it and don't allocate it.

Buy what you need, not what you would "like to have"

"Neither a borrower or a lender be"...sage advice for congress.

All congress ever has had to do is learn how to use a personal checkbook and apply the same rules to the public coffer. But no, they have to play this game to continue to attempt to garner votes for the next election never considering the next generation. They are thieves and liars and should be stripped, whipped and run naked through the tall weeds!
 
Now they put the house into recess right when the Democrats tried to force a vote. They know they would lose the vote so they're resorting to procedural tricks to try to prevent the middle class from getting one of the tax cuts that they are so adamant the rich need. It's disgusting. They are betraying the American people. Remember what they did today every time you pay your Boehner tax.
 
I would normally support a tax hike regardless of the recession, because it means an opportunity for more infrastructure planning; however, based on the bailouts, we know that the additional revenue will just be squandered by the Republicrats, probably on the private sector.

Tax breaks set to expire by law should be allowed to, but I think our #1 problem is still our Congress itself. Everyone seems to want to reign in spending except when it comes to their own pet projects. Our government is ethically bankrupt.
 
Yes, because Employers can really afford to do 60 day tax calculations, and should be expected to plan the coming year based on this Banana Republic style Governing the President and Senate think is a good idea.

Folks, the HOUSE all ready passed a 12 MONTH extension. The SENATE Dem's made a political calculation and tried to punt to get what they wanted. As a Conservative, of course I'm going to lean automatically towards the lower taxes, but in this case I'll go with the more common sense approach:

60 days and hope.

1 Year


Which of the above helps the economy? Which of the above would give businesses a clear idea of costs and administrative bull**** they will need to figure out for the next 12 months? Which one is truly a job helper, and not a job harming option.


Pinning this on the GOP is a liberals wet dream, playing heart strings and emotions hoping with the Christmas Season upon us, people will hear the House Rejects a Tax Cut!!! Instead of stopping for that two second heart beat to think about the difference in approaches.


Carry on my liberal friends, denouncing the GOP for trying to push for 12 month tax policy, instead of 60 day political punts.
 
Yes, because Employers can really afford to do 60 day tax calculations, and should be expected to plan the coming year based on this Banana Republic style Governing the President and Senate think is a good idea.

Folks, the HOUSE all ready passed a 12 MONTH extension. The SENATE Dem's made a political calculation and tried to punt to get what they wanted. As a Conservative, of course I'm going to lean automatically towards the lower taxes, but in this case I'll go with the more common sense approach:

60 days and hope.

1 Year


Which of the above helps the economy? Which of the above would give businesses a clear idea of costs and administrative bull**** they will need to figure out for the next 12 months? Which one is truly a job helper, and not a job harming option.


Pinning this on the GOP is a liberals wet dream, playing heart strings and emotions hoping with the Christmas Season upon us, people will hear the House Rejects a Tax Cut!!! Instead of stopping for that two second heart beat to think about the difference in approaches.


Carry on my liberal friends, denouncing the GOP for trying to push for 12 month tax policy, instead of 60 day political punts.

yes, in fact, this will reflect poorly on the republicans.
 
yes, in fact, this will reflect poorly on the republicans.

Smart intelligent planning is bad, 60 day ad hoc tax policy for political gain is good. GOTCHA! I thought you were better then that liblady, for some reason you have disappointed me here more then I thought possible.
 
Smart intelligent planning is bad, 60 day ad hoc tax policy for political gain is good. GOTCHA! I thought you were better then that liblady, for some reason you have disappointed me here more then I thought possible.

i'm telling you the reality. this makes the republicans look bad in the eyes of country. are you saying otherwise?

i would much prefer a year deal, but failing that, 60 days gives them some time to work on the other bull**** they are throwing into the bill.
 
i'm telling you the reality. this makes the republicans look bad in the eyes of country. are you saying otherwise?

i would much prefer a year deal, but failing that, 60 days gives them some time to work on the other bull**** they are throwing into the bill.

60 days is a political punt, and after average joe voter gets a few minutes to think about it, they'll realize what a bad deal 60 days is.
 
WTF is wrong with a extension of the payroll tax-cut for 12 months....as opposed to 2 months??

what's the value in only kicking the can down the road to February?

why set themselves up for just another fight in such a short period of time?

pass the Senate plan.....except make it 12 months rather than 2.

this whole issue, really shows how ****ed up our govt. is.
 
60 days is a political punt, and after average joe voter gets a few minutes to think about it, they'll realize what a bad deal 60 days is.

60 days was a concession to the Republicans in the senate who refused to do a whole year... The idea is that it gives them time to negotiate a year long deal. I'm betting you already knew that though.
 
Wait, I thought the Democrats told us social security was like an annuity for our retirement. It's not a tax, they said.
 
Wait, I thought the Democrats told us social security was like an annuity for our retirement. It's not a tax, they said.

You've got it backwards. Republicans like to claim it's not a tax so they can make it sound like we have a more progressive tax system than we actually do. But whether you call it a tax or not doesn't matter obviously. You can call it a flying monkey and it will still have exactly the same impact on people's lives it would if you call it a tax.
 
So I recapped the two positons:


House Bill – HR 3630
PROVISIONS
Extends payroll tax cut of 2% for 12 months
Demands BHO up/down decision on Keystone XL in 60 days
Extends UI benefits but only to 33wks not 73wks
Extends Medicare ‘Doc fix’
Requires GED/training programs for UI
Prohibits using food stamps for liquor, gambling and strip clubs
Extends 100 percent business expensing through 2012
Allows states to drug test for UI benefits
Eliminates new EPA emission standards for boilers/incinerators
Mandates SS numbers for Illegal alien children before gov assistance

FUNDING
Raises Government Sponsored Enterprise (GSE) guarantee fees to better price the risks GSEs cover and reduce their unfair advantages over the private sector
Includes spectrum auctions and other reforms to bring in significant revenues for taxpayers by making more efficient and effective use of the public’s airwaves
Reforms the National Flood Insurance Program by eliminating the pre¬mium subsidy for certain properties
Better coordinates with states and localities to prevent Social Security overpayments
Ensures that illegal immigrants who are not eligible to work in the U.S. do not get checks from the IRS Gradually increases Medicare premiums for high income beneficiaries
Prohibits millionaires from receiving unemployment insurance and food stamp benefits

Middle Class Tax Relief & Job Creation Act: GOP Plan Extends Current Payroll Tax Relief, Protects Social Security, Reforms and Extends Unemployment Insurance & Includes Key Jobs Initiatives | Speaker of the House John Boehner | speaker.gov



Senate Bill
Extends payroll tax cut of 3.1% for 2 months
Demands BHO up/down decision on Keystone XL in 60 days
Maintains 99wk UI – extends eligibility 2 mo.
Extends ‘Doc fix’
Extend the current law work geographic price cost index
Extension of Exceptions Process for Medicare Therapy Caps


Funding
Uses increased fees on FM/FM
Uses increased fees on FHA

Summary of the Two-Month Payroll Tax Cut Extension | Senate Democrats

Please correct any of the observations listed above. Sure looks like the GOP is overextending...but I guess it is a better place to begin 'negotiations'...?
 
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